Myth 1: Bitcoin absorbs market funds from altcoins
• Market view: Some people believe that when the price of Bitcoin rises, market funds flow to Bitcoin, causing the price of altcoins to fall, creating a "blood-sucking" effect.
• Professional Interpretation: This view ignores the key factor of market sentiment. In a real capital "blood-sucking" scenario, even if the price of altcoins does not rise, the market will still have FOMO sentiment due to panic buying. However, current market sentiment has not reached this level. According to the market trend in 2023, Bitcoin and altcoins are not ebbing and flowing, but more of a phenomenon of resonance at the same frequency. Currently, altcoins are in a wait-and-see stage, waiting for Bitcoin to break through key points such as $68,000 and new all-time highs. This breakout would provide greater market certainty, with altcoins expected to quickly follow Bitcoin higher.
Myth 2: Altcoins will rise simultaneously with Bitcoin
• Market view: Some people believe that when the price of Bitcoin rises, market funds flow to Bitcoin, causing the price of altcoins to fall, creating a "blood-sucking" effect.
• Professional Interpretation: The phenomenon of synchronized rise of altcoins across the market in the past is unlikely to be repeated under the current market structure. What is more likely to occur in the future is the phenomenon of sector rotation, that is, different altcoin sectors will take turns to lead the rise. Such a market rhythm will be more orderly and last longer. This is especially beneficial for experienced investors, because as long as you insist on holding a specific currency, it will eventually rise as the sector rotates. However, this market environment can be challenging for novice investors, as they can easily fall into the trap of chasing the rise and killing the fall, resulting in losses.
Market Trends and Investment Advice
• Key points and market signals: The current market focus is on whether Bitcoin can break through the two key resistance levels of $68,000 and record highs. A breakthrough will further confirm the continuity of the bull market and bring new impetus to the altcoin market.
• Sector rotation and long-term investment strategies: In a market environment of sector rotation, long-term holding strategies will be better than short-term speculation. Investors should wait patiently for the natural rotation of the market and avoid frequent transactions due to short-term market fluctuations to reduce unnecessary risks. #美国大选如何影响加密产业？ #BTC要挑战7W大关了吗？ #特朗普家族加密项目 #美股财报季来袭 $BTC
